Realty developers are in queue for bank funds with usual sources of funding like PE and the stock market crumple in the present downturn and the realty which has also experienced a big strike in the downturn has accounted for the biggest hunk of non-food bank credit defray in the last financial year. The developers have utilized most of these funds to meet operational capital needs. An officer of foreign international bank on situation of obscurity said to www.propertykhazana.com that, “New credit offtake is on report of venture financing.” Therefore, banks are aiding realty firms to finish their ventures, sell them and pay back the loans to the banks and the finishing of ventures will orderly assist the developers to pay a debt in their inventory of unsold assets and form liquidity to meet operating costs.

Reported sources said at the www.proeprtykhazana.com that, RBI information reveals that bank’s new loans to realty firms has registered 65% growth to Rs. 35,000 Crores in a financial year, compared to 27% growth in the last year. Nearly half of the loans were lent during December and February, afar, RBI has declined the risk weightage on realty loans to 150% from 220% in the new economy rule, backing the banks scheme. As banks have been cautious in lending to realty firms, this time they have taken the bounce, when making certain safety net in the place. Executive Director of Bank of India said to www.propertykhazana.com that, “Banks are not in rush to lend to meet their credit offtake targets.” For more updates on realty market browse www.propertykhazana.com.